pmt function in Excel does not return correct monthly payment amou

annual int rate = 5.75
number of months = 360
principle - 320000
PMT answer = (103,667.97)

This is not correct. Can someone advise correct format for computing this
payment amount. Seesm straight forward.

Hi

I get an answer of 1867.43
Are you dividing your 5.75% by 12 to get it to a monthly rate?

--
Regards
Roger Govier
"Harraman@Bangalore" <Harraman@[email protected]> wrote in
message news:[email protected]...
> annual int rate = 5.75
> number of months = 360
> principle - 320000
> PMT answer = (103,667.97)
>
> This is not correct. Can someone advise correct format for computing this
> payment amount. Seesm straight forward.

Note that interest rates are expressed as fractions, like 0.0575.
Also note that if the number of periods is in months, the rate should be the
month rate too.

If you still can't solve it, repost here and supply your formulas, values
and expected result please.
--

Kind Regards,

Niek Otten

Microsoft MVP - Excel

"Harraman@Bangalore" <Harraman@[email protected]> wrote in
message news:[email protected]...
> annual int rate = 5.75
> number of months = 360
> principle - 320000
> PMT answer = (103,667.97)
>
> This is not correct. Can someone advise correct format for computing this
> payment amount. Seesm straight forward.

Great, thanks. I entered the % as 5.75 rather than.0575. The example from
Microsolt Help on PMT is not correct. They show it as 8%.

So, again, thanks.

"Niek Otten" wrote:

> Note that interest rates are expressed as fractions, like 0.0575.
> Also note that if the number of periods is in months, the rate should be the
> month rate too.
>
> If you still can't solve it, repost here and supply your formulas, values
> and expected result please.
> --
>
> Kind Regards,
>
> Niek Otten
>
> Microsoft MVP - Excel
>
> "Harraman@Bangalore" <Harraman@[email protected]> wrote in
> message news:[email protected]...
> > annual int rate = 5.75
> > number of months = 360
> > principle - 320000
> > PMT answer = (103,667.97)
> >
> > This is not correct. Can someone advise correct format for computing this
> > payment amount. Seesm straight forward.
>
>
>

The issue is that I followed the Microsoft guideline and entered the % as
5.75 rather than .0575. I changed it and got the correct answer. Niek Otten
also responded and gave me this direction.

"Roger Govier" wrote:

> Hi
>
> I get an answer of 1867.43
> Are you dividing your 5.75% by 12 to get it to a monthly rate?
>
> --
> Regards
> Roger Govier
> "Harraman@Bangalore" <Harraman@[email protected]> wrote in
> message news:[email protected]...
> > annual int rate = 5.75
> > number of months = 360
> > principle - 320000
> > PMT answer = (103,667.97)
> >
> > This is not correct. Can someone advise correct format for computing this
> > payment amount. Seesm straight forward.
>
>
>

Not sure what "Microsoft guideline" you were following, but, as Help
shows, you can enter the percentage as

5.75%

rather than

0.0575

Note the % sign.

In article <[email protected]>,
Harraman@Bangalore <Harraman@[email protected]>
wrote:

> The issue is that I followed the Microsoft guideline and entered the % as
> 5.75 rather than .0575.

If you enter 5.75% as opposed to 5.75 then Excel will interpret this
correctly for you as .0575.
However, you said in your original post
> annual int rate = 5.75
> number of months = 360

If that is the case, then you are dealing in months as your periods and the
interest rate has to be expressed as the interest rate per period. Therefore
you need it to be either 5.75% / 12 or 0.0575 / 12 in order to obtain
the correct result.
--
Regards
Roger Govier
"Harraman@Bangalore" <Harraman@[email protected]> wrote in
message news:[email protected]...
> The issue is that I followed the Microsoft guideline and entered the % as
> 5.75 rather than .0575. I changed it and got the correct answer. Niek
> Otten
> also responded and gave me this direction.
>
> "Roger Govier" wrote:
>
>> Hi
>>
>> I get an answer of 1867.43
>> Are you dividing your 5.75% by 12 to get it to a monthly rate?
>>
>> --
>> Regards
>> Roger Govier
>> "Harraman@Bangalore" <Harraman@[email protected]> wrote
>> in
>> message news:[email protected]...
>> > annual int rate = 5.75
>> > number of months = 360
>> > principle - 320000
>> > PMT answer = (103,667.97)
>> >
>> > This is not correct. Can someone advise correct format for computing
>> > this
>> > payment amount. Seesm straight forward.
>>
>>
>>

Microsoft Help *is* correct. You can enter "8%" as the rate. However, you
entered only "5.75". That's your problem. You need to enter "5.75%".

--
Regards,
Fred
Please reply to newsgroup, not e-mail


"Harraman@Bangalore" <Harraman@[email protected]> wrote in
message news:[email protected]...
> Great, thanks. I entered the % as 5.75 rather than.0575. The example from
> Microsolt Help on PMT is not correct. They show it as 8%.
>
> So, again, thanks.
>
> "Niek Otten" wrote:
>
>> Note that interest rates are expressed as fractions, like 0.0575.
>> Also note that if the number of periods is in months, the rate should be
>> the
>> month rate too.
>>
>> If you still can't solve it, repost here and supply your formulas, values
>> and expected result please.
>> --
>>
>> Kind Regards,
>>
>> Niek Otten
>>
>> Microsoft MVP - Excel
>>
>> "Harraman@Bangalore" <Harraman@[email protected]> wrote
>> in
>> message news:[email protected]...
>> > annual int rate = 5.75
>> > number of months = 360
>> > principle - 320000
>> > PMT answer = (103,667.97)
>> >
>> > This is not correct. Can someone advise correct format for computing
>> > this
>> > payment amount. Seesm straight forward.
>>
>>
>>